CAR dealership Pendragon is on track to beat annual profit forecasts.

The group, based in Nottingham, bought rival CD Bramall for £230m in January and said the integration was ahead of schedule following the completion of the deal in February.

Trading at the core UK business was also strong, leading Pendragon to expect pre-tax profits before goodwill and one-off items to exceed the £54.1m expected by the market for the year to December 31.

Pendragon, which is the UK's largest car dealership, plans to use the acquisition of CD Bramall, based in Harrogate, to increase the size of its sales operation for Ford, Vauxhall, Mercedes-Benz and BMW.

It also hopes to boost its national coverage, with more locations in Scotland and the South West.

The group told shareholders at its annual meeting yesterday: "The integration is proceeding ahead of programme and the benefits are beginning to flow through."

Despite recent interest rate rises, the group said it still expected to exceed profits forecasts for the full year.

During the past financial year, Pendragon posted a 27 per cent rise in pre-tax profits before goodwill and exceptional items to £38.2m. Turnover fell to £1.84bn from £1.88bn previously.

The company said at the time that robust consumer confidence and the low cost of finance had kept the market buoyant.

Pendragon employs about 11,500 people in the UK and operates 230 franchises. It also operates in the US and Germany.